White House to Convene Banking and Cryptocurrency Leaders to Forge Compromise on Crypto Legislation
By Hannah Lang, January 28, 2026
In an effort to break the legislative deadlock surrounding groundbreaking cryptocurrency regulation, the White House announced plans for a high-profile meeting on Monday with executives from both the traditional banking sector and the cryptocurrency industry. The summit, hosted by the White House’s cryptocurrency council, aims to broker a compromise on key elements of pending crypto legislation that have caused tension between the two powerful sectors, according to three industry sources familiar with the discussions.
Focus on Stablecoin Interest Provisions
Central to the discussions will be the treatment of interest and other rewards that cryptocurrency firms can offer customers on their holdings of stablecoins — digital tokens pegged to the U.S. dollar. These provisions have emerged as a major sticking point in negotiations and were a key reason behind the abrupt postponement earlier this month of the Senate Banking Committee’s scheduled debate and vote on the legislation, known as the Clarity Act.
The legislation seeks to establish a comprehensive federal regulatory framework for digital assets, reflecting years of lobbying efforts by the crypto industry. Through this bill, proponents hope to provide much-needed legal certainty for crypto companies operating in the U.S., which currently face a patchwork of inadequate regulations.
Divergent Interests Stoking Deadlock
Crypto companies emphasize that the ability to offer interest-bearing rewards is critical for attracting customers in a highly competitive market. They argue that disallowing these incentives would be anti-competitive and stifle innovation. High-profile crypto trade associations such as the Blockchain Association, which represents major players like Coinbase, Ripple, and Kraken, have expressed strong support for resolving these issues to ensure that the U.S. remains a global leader in cryptocurrency innovation.
Conversely, banks have voiced serious concerns that permitting stablecoin-related interest payments—whether directly or via third parties like crypto exchanges—could trigger a significant outflow of deposits from federally insured banks. Deposits are the primary funding source for most banks, and their erosion could pose risks to financial stability. A recent report by Standard Chartered warned that stablecoins could divert as much as $500 billion in deposits from U.S. banks by 2028 if left unchecked.
Political Challenges and Regulatory Context
The contentious issue traces back to a law passed last year that established a federal regulatory framework for stablecoins but prohibited stablecoin issuers from paying interest. However, critics argue that a loophole remains under which third parties could offer yield on these tokens, intensifying competition with traditional banks.
The Clarity Act, currently under Senate consideration after being passed by the House in July, has faced internal divisions within the Republican Party regarding stablecoin provisions. Some senators reportedly doubt that the bill can garner enough support to move forward without a negotiated agreement addressing these concerns.
White House’s Active Role
The upcoming White House summit exemplifies the Trump administration’s keen interest in advancing the legislation. President Donald Trump, who actively courted crypto backers during his campaign by promising to foster greater adoption of crypto assets, appears determined to find a path forward that balances innovation with financial system safeguards.
Summer Mersinger, CEO of the Blockchain Association, conveyed optimism, stating her group was “proud to participate in next week’s meeting” and committed to “working with policymakers across the aisle so Congress can advance lasting market structure legislation.” Cody Carbone, CEO of The Digital Chamber, another major crypto trade group, credited the White House for “pulling all sides to the negotiating table.”
Outlook
As the White House summit approaches, stakeholders from both the banking and crypto industries await the possibility of a breakthrough that could unlock stalled legislation and chart a clear path for the future of digital asset regulation in the United States. The outcome may determine how the U.S. balances support for rapidly evolving crypto markets with the need to preserve the integrity and stability of the traditional financial system.
Reporting by Hannah Lang in New York; Editing by Chizu Nomiyama.